Shop - N-Go Systems purchased cash registers on April 1 for $6,000. If this asset has an estimated useful life of four years, what is the netbook value of the cash registers on May 31 if the company uses the straight-line method of depreciation?

Depreciation = $250

Explanation:

Giving the following information:

Purchasing price = $6,000

Useful life = 4 years

Depreciation = straight-line

First, we need to calculate the annual depreciation:

Annual depreciation = (original cost - salvage value) / estimated life (years)

Annual depreciation = 6,000/4 = 1,500

Now, the depreciation for two months:

Depreciation = (1,500/12) * 2

Depreciation = $250